Associated British Foods PLC (LSE: ABF)

Associated British Foods PLC is an FTSE 100 index listed British multinational food processing and retailing entity.

Upcoming Event: On 27 February 2023, ABF expects to release its pre-close trading update for interim results.

Trading Update (for the 16 weeks to 7 January 2023, as on 24 January 2023)

• For the above-mentioned period, ABF’s revenue surged 20% YoY at actual exchange rates. Subsequently, it expects the FY23 aggregate profit of its Food businesses to be ahead of its last financial year, albeit with a lower margin.
• Macroeconomic headwinds can continue to weigh on consumer spending. As Primark trading has been ahead of market expectations, FY23 sales are likely to be higher than FY22; however, adjusted operating profit and adjusted earnings per share are expected to be lower than in the previous financial year.
• In the Food businesses, input cost inflation has become less volatile; however, businesses continued to struggle in restoring margins.
• Under the retail division, Primark like-for-like sales (for the above-mentioned period) were 11% ahead, supported by higher unit volumes and higher average selling prices. In FY23, ABF plans to open 17 stores.

Share Price Chart

 (Data Source: REFINITIV, Analysis done by Kalkine Group)

Markets are trading in a highly volatile zone currently due to certain macro-economic issues and geopolitical tensions prevailing. Therefore, it is prudent to follow a cautious approach while investing.

Associated British Foods PLC was trading at the closing price of GBX 1,832.00 (as of 24 January 2023).

Note 1: Past performance is not a reliable indicator of future performance.

Note 2: The reference date for all price data, currency, technical indicators, support, and resistance level is 24 January 2023. The reference data in this report has been partly sourced from REFINITIV.

Note 3: ‘Kalkine reports are prepared based on the stock prices captured either from the London Stock Exchange (LSE) and or REFINITIV. Typically, both sources (LSE and or REFINITIV) may reflect stock prices with a delay which could be a lag of 15-20 minutes. There can be no assurance that future results or events will be consistent with the information provided in the report. The information is subject to change without any prior notice.’

Note 4: Dividend Yield may vary as per the stock price movement.

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